Menu
10/01/2013
Watchdog Highlights Defence Project Delays And Overspending
Huge defence projects are being hit by delays and overspend despite government promises to control costs, according to a report today by the National Audit Office.
In respect of its largest defence projects there are early signs that the Ministry of Defence has begun to make realistic trade-offs between cost, time, technical requirements and the amount of equipment to be purchased.
The uncertainties these introduce reduce the MOD’s ability to plan and manage the defence budget effectively, the report noted.
The document, which gives a progress review of the 16 largest defence projects, shows that in the last year there has been a total forecast slippage of 139 months and increase in costs of £468 million.
This means that, since the projects were approved, costs have increased by £6.6 billion (around 12 per cent more than the planned cost) and the projects have been delayed by 468 months, taking almost a third longer than originally expected.
The MOD is accepting the capability risk and some wider costs resulting from these project delays and is having to make difficult decisions about long-term capabilities. For example, the version of the Falcon communications system being developed for use in Afghanistan, at a cost of £32 million, will now not be deployed to theatre. This is partly owing to development delays and it means that there will need to be reliance on legacy systems for a longer period.
Amyas Morse, head of the National Audit Office, said today: "The Ministry of Defence faces a difficult task striking a balance between delivering the capabilities it wants and those it can afford. There will always be factors over which the Department has limited control, but it must do more to learn from previous projects.
"The continuing problems highlighted in my report show that, if it is to make the most of the money available, the Department has more to do to address its longstanding issues on project performance."
(GK)
In respect of its largest defence projects there are early signs that the Ministry of Defence has begun to make realistic trade-offs between cost, time, technical requirements and the amount of equipment to be purchased.
The uncertainties these introduce reduce the MOD’s ability to plan and manage the defence budget effectively, the report noted.
The document, which gives a progress review of the 16 largest defence projects, shows that in the last year there has been a total forecast slippage of 139 months and increase in costs of £468 million.
This means that, since the projects were approved, costs have increased by £6.6 billion (around 12 per cent more than the planned cost) and the projects have been delayed by 468 months, taking almost a third longer than originally expected.
The MOD is accepting the capability risk and some wider costs resulting from these project delays and is having to make difficult decisions about long-term capabilities. For example, the version of the Falcon communications system being developed for use in Afghanistan, at a cost of £32 million, will now not be deployed to theatre. This is partly owing to development delays and it means that there will need to be reliance on legacy systems for a longer period.
Amyas Morse, head of the National Audit Office, said today: "The Ministry of Defence faces a difficult task striking a balance between delivering the capabilities it wants and those it can afford. There will always be factors over which the Department has limited control, but it must do more to learn from previous projects.
"The continuing problems highlighted in my report show that, if it is to make the most of the money available, the Department has more to do to address its longstanding issues on project performance."
(GK)
Related UK National News Stories
Click here for the latest headlines.
10 November 2004
MoD rapped over its handling of defence projects
The way in which the MoD buys and develops defence equipment has come under fire in a new National Audit Office (NAO) report published today. The MoD came in for criticism after the NAO found that that, in the last year, costs on the MoD’s 20 biggest equipment projects had increased by £1.7 billion.
MoD rapped over its handling of defence projects
The way in which the MoD buys and develops defence equipment has come under fire in a new National Audit Office (NAO) report published today. The MoD came in for criticism after the NAO found that that, in the last year, costs on the MoD’s 20 biggest equipment projects had increased by £1.7 billion.
23 January 2004
£3bn overspend identified in MoD equipment projects
Britain's overspend on its defence projects topped £3 billion last year, more than 6% above their approved costs, according to a National Audit Office (NAO) report published today.
£3bn overspend identified in MoD equipment projects
Britain's overspend on its defence projects topped £3 billion last year, more than 6% above their approved costs, according to a National Audit Office (NAO) report published today.
14 March 2005
Army urged to crack down on bullying
The armed forces have been criticised over the way they handle cases of bullying in an MPs report. The report by the Commons Defence Select Committee accused the army of failing to "grasp the nettle of duty of care" to its recruits.
Army urged to crack down on bullying
The armed forces have been criticised over the way they handle cases of bullying in an MPs report. The report by the Commons Defence Select Committee accused the army of failing to "grasp the nettle of duty of care" to its recruits.
20 July 2004
Thales 'preferred bidder' for multi-million pound defence project
Thales Defence Ltd has been named as the preferred bidder for the MoD's multi-million pound unmanned aerial vehicles (UAVs) programme. Four companies (Thales, Northrop Grumman, BAE Systems and Lockheed Martin) were invited to undertake the first stage of the assessment phase.
Thales 'preferred bidder' for multi-million pound defence project
Thales Defence Ltd has been named as the preferred bidder for the MoD's multi-million pound unmanned aerial vehicles (UAVs) programme. Four companies (Thales, Northrop Grumman, BAE Systems and Lockheed Martin) were invited to undertake the first stage of the assessment phase.
26 September 2003
More women die of heart disease than men: WHO report
Contradicting conventional wisdom, the largest-ever worldwide collaborative study of heart disease has found that women are slightly more likely to die from cardiovascular disease (CVD) than men and that heart attacks and strokes kill twice as many women as all cancers combined, the World Health Agency said today. Out of the total 16.
More women die of heart disease than men: WHO report
Contradicting conventional wisdom, the largest-ever worldwide collaborative study of heart disease has found that women are slightly more likely to die from cardiovascular disease (CVD) than men and that heart attacks and strokes kill twice as many women as all cancers combined, the World Health Agency said today. Out of the total 16.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
